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For Immediate Release:  
For Further Information:
May 10, 2006

Office of The Attorney General
- Zulima V. Farber, Attorney General
Division of Criminal Justice
- Gregory A. Paw, Director
Office of the Insurance Fraud Prosecutor
- Greta Gooden Brown, Insurance Fraud Prosecutor

 

Division of Criminal Justice
609-984-1936

 

Essex County Plastic Surgeon Pleads Guilty
to $925,000 Disability Insurance Fraud

TRENTON - Attorney General Zulima V. Farber and Division of Criminal Justice Director Gregory A. Paw announced that a West Orange plastic surgeon has pleaded guilty to theft by deception for twice making false claims that he was totally disabled from the practice of plastic surgery and entitled to obtain disability benefits from an insurance company.

According to Insurance Fraud Prosecutor Greta Gooden Brown, W. Lance Kollmer, 57, of Northgate Road, Mendham, Morris County, a plastic surgeon licensed to practice in New Jersey, pleaded guilty before Superior Court Judge Joseph C. Cassini III in Essex County to two counts of second degree theft by deception contained in a state grand jury indictment returned on October 12, 2004. Second-degree crimes carry a sentence of up to 10 years in state prison and a criminal fine of up to $150,000. Kollmer also faces civil insurance fraud fines. This matter will be referred to the New Jersey Board of Medical Examiners for any action it deems appropriate. Kollmer’s medical license was previously suspended.

At the guilty plea hearing on May 8, Kollmer admitted that in 1999 he submitted a false disability claim to Sentry Insurance Company under a business overhead expense policy for the expenses associated with running his medical practice. Kollmer claimed that he was disabled and unable to perform surgery. An investigation conducted by the Division of Criminal Justice - Office of Insurance Fraud Prosecutor revealed that Kollmer continued to perform surgery during the time he claimed he was doing no surgeries. Most of the surgeries were reconstructive procedures performed on trauma victims in various hospital emergency rooms.

Kollmer also admitted that in 2001 he submitted a second false disability claim to U.S. Life/American General Insurance Company. He again sought reimbursement for office overhead expenses associated with his medical practice and benefits under a separate long-term disability policy, alleging he sustained a totally disabling injury to his rotator cuff in a volleyball game on March 13, 2001, approximately one month before he surrendered his license to practice
medicine.

The investigation conducted by the Office of Insurance Fraud Prosecutor determined that Kollmer sustained the injury to his rotator cuff in or about May 2001, after he surrendered his license to practice medicine, at a time when he was no longer covered under his disability policies. As a result of these false claims, Kollmer admitted collecting approximately $925,000 from Sentry and U.S. Life/American.

“It is particularly troubling that a person licensed to practice medicine and surgery would steal from insurance companies,” said Fraud Prosecutor Brown. “This type of insurance fraud raises costs for doctors as well as patients.”

State Investigators Lisa Shea and Janet Wustefeld, Civil Investigators George Douglas and Chris Gasbarro, Administrative Analysts Kathleen Ratliff and Paula Carter, and Deputy Attorney General Michael A. Monahan handled the case for the Office of Insurance Fraud Prosecutor.

Kollmer is scheduled to be sentenced by Judge Cassini on July 10, 2006.

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